Synopsis Affiliate marketing is the practice of promoting a company's products in return for a commission.

Chapter Contents What is Affiliate Marketing? Three Basic Steps Benefits of Affiliate Marketing Responsibilities of Affiliate Marketing

What is Affiliate Marketing?

Affiliate marketing is the practice of promoting a company's products in return for a commission.

Wherever merchants are selling goods, the principles of affiliate marketing can be seen. For example, a car salesman working at a major car dealership can be considered a kind of affiliate marketer, working for the dealership. The salesman agrees to sell cars to customers. When he sells a car, he is paid a commission. The salesman is not involved with manufacturing the cars. He simply sells them and collects his commission.

Affiliate marketing has been happening since the early beginnings of commerce, and while the advent of the Internet has created new opportunities, the basic concepts have not changed. It is still the process of promoting a company's products in return for a commission. So, how has the Internet changed the business of affiliate marketing?

• First and foremost, anyone can participate. From a Fortune 500 company to a student or retiree, anyone can be an affiliate. The Internet eliminates the need for retail locations, or sales staff, lowering the barriers for entry into the market.
• The Internet provides many ways of marketing products. Affiliates are limited only by their imaginations.
• Merchants can afford to partner with thousands of affiliate marketers, with little overhead.